ASSOCHAM National Summit

1. ASSOCHAMNational Summit �e-Governance for 10% Growth� 14th July, 2006 New Delhi

2. Presentation Structure

3. 1. NEGP & CSC Scheme

4. The CSC Scheme: A Strategic Cornerstone of NeGP

5. To establish 100,000 CSCs in rural areas with equitable geographical spread Objective of the CSC Scheme

6. The Challenge: Building 100,000 Rural Businesses The CSC Scheme is NOT about rolling out hardware The challenge is to build a sustainable business model that is driven by the developmental needs of the rural population of India through: focused collaborative efforts of various stakeholders a non-exclusive, transparent and professionally managed process Focus on how to involve local communities, seed and nurture rural entrepreneurs Government support perspective Shift away from a Capital Subsidy model to a revenue support model linked to continued operation and service level of CSC

7. Existing Government Initiatives Approximately 15,000 Kiosks (Pvt. & Govt.) operating all over India Community Information Centres, North East. Bhoomi Kiosks for distributing land records in Karnataka. e-Seva Common Citizen Service Centers in rural & urban Andhra Pradesh. Akshaya Centers in Malapuram District, Kerala. Mahiti Shakti Sukhmani Common Citizen Service Centers in Chandigarh & Punjab. SETU Business Kiosks in Maharashtra. STAR Kiosks in Tamil Nadu. LokMitra Kiosks in Rajasthan. JanMitra Kiosks in Himachal Pradesh. Bangalore One Common Citizen Service Centres. FRIENDS Common Citizen Service Centres in Kerala. Gyandoot Project in MP. Check Posts Kiosks in Gujarat, Rajasthan & few other states. CARD Project in Andhra Pradesh. Ministry of Panchayat Raj, Govt. of India Kiosks

8. ITC e-Choupal : 5300 Kiosks n-Logue : 1700 Kiosks Drishtee : 700 Kiosks AISCET :4000 Kiosks DA-TaraHaat : 40 Kiosks. Datamation : 35 Kiosks. Others : 500 Kiosks Limitations: Lack of sufficient variety of services Lack of economies of scale to capture & cater to mass population No aggregation of content & services Lack of awareness of potential of rural markets among other private investors Top down delivery of services, hence not catering to citizen specific requirements Non-integration of private and government initiatives Private & Civil Society Initiatives

9. Learnings so far� Viability of centres are influenced by multiple factors such as: Nature of services Location of Centres Volume of Business Seasonality of Business limited operational infrastructure Demand-driven Challenges were: resource mobilization aggregation of content and services, regular knowledge sharing and capacity building,  Scalability rests on: an innovative combination of structured environments; rural entrepreneurship and market mechanisms government policy and support The proposed CSC Scheme aims to achieve these objectives through a Public Private Partnership (PPP)

10. 2. Services

11. Integrated Services Model

12. The CSC - value to Rural Citizen

13. Effecting Transformations

14. Agriculture

15. Education

16. Banking and Finance

17. Government Services

18. G2C Services : A Snapshot Nearly all States in the country have initiated action on back-end computerisation efforts under the NeGP. Key services taken up, most of which are in line with the MMPs under the NeGP are: Land records Registration Issue of Certificates/ Government Schemes Employment Exchange Ration Cards Electoral Services Pension Schemes Road Transport Public Grievance

19. 3. Stakeholders

20. Stakeholders of CSC After the stakeholder side � Visualization diagrams � Program side Funding sideAfter the stakeholder side � Visualization diagrams � Program side Funding side

21. The Implementation Framework

22. DIT Role Provide Policy & Regulatory support Provide Financial Support in the form of guaranteed �Sustenance Revenue� Provide necessary support for delivering e-Government Service Facilitate infrastructure support through SWANs Combine Central & State support for the CSC Scheme Enable approvals at the Central and State level for smooth implementation of the CSC Scheme

23. NLSA/ SPV Undertake Project Dev work, develop a PPP model Build Partnerships with Content & Service Providers, Undertake resource mobilization Develop training & capacity building plans Assist States to manage bid process for SCA selection Share Best Practices, provide continuous feedback, monitor the CSC Ecosystem Facilitate achievement of goals & objectives of Scheme

24. State Government / SLA Role Provide policy and budgetary support to SCAs & VLEs Facilitate rollout of e-Government services for CSCs Manage bid process and selection of SCAs & vendors Support the CSCs through the Sustenance Revenue framework � back stopped by the GoI Provide local infrastructure support � SWANs, SDCs, etc.

25. The Service Center Agency (SCA) The SCA is the Prime Driver of the CSC Expected to come from diverse segments Corporates like ITC and Tata Chemicals PSUs like BEL and ECIL SMEs and Entrepreneurs like Drishtee, n-Logue and Grasso Training institutes like AISECT and MITCON NGOs like Tarahaat and SEWA SHGs like Dhan Foundation Co-operatives like NDDB, etc Basically agencies having experience in creating and managing service delivery in rural India

26. The Village Level Entrepreneur (VLE) Is the CSC owner Responsible for commercial viability of the CSC Expected to invest Rs 20-30,000 as deposit & Rs 2,500 on training Capacity building of VLEs will be critical for CSC scheme success. Revenue flows to the VLE are expected from: E-Government Services, private sector Services (Entertainment, Tele-medicine, education, etc.), subscription Charges

27. SCA Selection , Role of SCAs Selection of SCA (based on financial support sought) by States, through a transparent process assisted by NLSA Responsibilities of SCA: Develop business plans for CSC Implementation, arrange the financing with help of NLSA if needed Identify, train and manage the VLEs (his franchisee) Co-ordinate with SLA Regular feedback and monitoring Build partnerships with content and service providers Share Best Practices A state could have between 2 to n SCAs (n = no. of districts) 200-250 SCAs expected across India

28. 4. PPP model

29. Special Features of CSC

30. Financial Stakes of Stakeholders

31. Illustrative Flow of Revenues

32. The Infrastructure Configuration Mix at CSCs Three possible configurations suggested: The investment potential and demand will determine the configuration

33. Strategy for Government Support Finance for basic CSC infrastructure from lenders Real challenge is in running & sustaining CSCs Strategy is to provide revenue support for Opex Revenue support ensures commitment towards sustainability, minimizes risks. Allows Government to optimize its funds by back ending the support. Support to be estimated through a price discovery method. Support in the form of a government guarantee.

34. Revenue support

35. SCA will bid on the revenue support envisaged based on: Indicative e-Government services as identified by the State Rates for the e-Government services to be charged to the citizens will be determined by State Survey of value added services that can be delivered Business potential assessment for �value added services� & �e-Government� services provided by SCAs State will offset �Revenue support� against income earned by SCA from Government Services. Revenue Support

36. 5. Timeline & Update

37. Project Phases

38. Facilitation of Stakeholders

39. Facilitation of Stakeholders

40. Action process flow for SCA

41. Split of top 100 SCA EOI applicants by Industry Vertical

42. State preparedness

43. Enabling 100,000 CSCs

44. The CSC Impact

45. Thank you Contact Roy Mathew Vice President, ILFS (Common Service Centre Projects ) PMU Office, 4th floor Electronic Niketan, 6, CGO Complex, Lodi Road, New Delhi �110 003 Tel : +91 11 64508506 Mobile : +91 98012 48188 Email : roy.mathew@ilfsets.com